IEA: Global Gas Demand to Grow at 1.6 Percent Yearly Until 2024

Published June 9th, 2019 - 06:30 GMT
Global gas demand is expected to grow
Global gas demand is expected to grow. (Shutterstock)
In 2018, global gas demand saw its strongest growth since 2010.

Global gas demand is expected to grow at a rate of 1.6 percent a year until 2024, fueled by Chinese consumption which will account for over a third of the demand growth during the period, the International Energy Agency said on Friday. 

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China's push to switch from coal to gas in power generation and natural gas for residential use to improve air quality under its "blue skies" initiative will play a major role in driving demand, the IEA said.

China's gas demand growth is seen at an average rate of 8 percent, down from the two-digit growth rate in recent years as its economic growth slows, but would still account for around 40 percent of the global demand increase in the coming years, said Keisuke Sadamori, IEA Director for Energy Markets & Security.

The Asia-Pacific region will remain the largest source of gas consumption growth in the medium term with an average rate of 4 percent per year, and will account for around 60 percent of the total consumption increase until 2024.

Domestic demand in the United States, the Middle East and North Africa, would contribute to the growth in demand, the IEA said in its annual gas market report.

Gas demand in Europe will benefit from the shutdown of coal and nuclear power plants, but gains would be limited by the expansion of renewables and lower demand for heating, it said.

The industrial sector is expected to be a strong source of growth, accounting for almost half of the global increase, replacing power generation as the main growth driver.

In 2018, global gas demand saw its strongest growth since 2010 at an estimated rate of 4.6 percent, driven by the United States and China, both accounting for 70 percent of total demand growth.

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